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Greetings!
Thank
you once again for taking time to read our monthly newsletter. We
hope that you find it informative and useful. It remains our goal
to bring you a recap of important trade news covering the last
month.
Our readership continues to grow every month. If you enjoy this
newsletter please consider sharing it with your colleagues. Simply
click on the "Forward to a Friend" icon found at the bottom of this
newsletter.
As always, the Trade Innovations Team welcomes your ideas,
questions, or suggestions. We can be reached by e-mail at
info@tradeinnovations.com. In the meantime, please accept
our wishes for a safe and enjoyable summer.
Sincerely,
The Trade Innovations
Team
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Trade News Briefs |
10,000 and
Counting:
U.S. Customs and Border
Protection (CBP) announced on September 23rd that the Customs-Trade
Partnership Against Terrorism (C-TPAT) program has surpassed 10,000
members. C-TPAT membership consists of a compilation of supply
chain stakeholders including importers, carriers, brokers,
forwarders and suppliers. For more information please follow this
link: C-TPAT Reaches 10,000
Members
ICC Publishes Revised
Incoterms: The International Chamber of Commerce (ICC)
published Incoterms 2010 in mid-September. They will go into
effect on on January 1, 2011. For more information or to order the
revised edition please follow this link: Incoterms 2010
CBP Withdraws Proposed First
Sale Changes:
Importers taking advantage of the "first sale" methodology for
valuing their U.S. imports heaved a sigh of relief on September
24th as CBP formally withdrew their proposal to develop a "sold for
exportation to the U.S." methodology for determining the dutiable
value of imported goods. CBP Commissioner Alan Bersin made this
one of his priorities after meeting with members of the trade
community and representatives from major trade associations. For a
copy of the formal notice please follow this link: CBP Formal Withdrawal
of First Sale Proposal
CIT Chides CBP in a Stinging
Decision: In 1999 two imports of textiles were sampled by
CBP. Several months later, well beyond the 30-day conditional
release period, CBP demanded redelivery of the shipments. When the
importer failed to return the goods to customs custody, CBP sued
seeking $120,000 in liquidated damages. On September 16th the U.S.
Court of International Trade (CIT) rendered a blunt decision in
favor of the Defendant calling the government's case "bankrupt".
The court went on to say that the government had no "colorable
claim" and that the case "should have never been brought". For a
copy of the 64 page decision please follow this link: CIT 10-105 U.S. v
Pressman-Gutman
C-TPAT 2010
Partner Survey: CBP along with the
Center for Survey Research at the University of Virginia released
the results of their 2010 C-TPAT Partner Survey in June.
Participants in the C-TPAT program cited tangible and intangible
benefits that outweigh the cost participation. For a copy of the
results please follow this link: C-TPAT 2010 Partner
Survey Results
GAO Issues Report on Maritime
Security: The Government Accountability Office (GAO) issued
a report relating to Maritime Security and Collaboration Among
Partners for Countering Piracy off the Horn of Africa. Somali
pirates operating off the Horn of Africa have attacked more than
450 ships and taken nearly 2,400 hostages since 2007. For a copy
of this 90 page report please follow this link: GAO Maritime Security
Report
OIG Report on ISA: The
Office of the Inspector General i(OIG) ssued a 19 page report on
the U.S. Customs & Border Protection's (CBP's) Importer Self
Assessment Program. The OIG report concluded that CBP "does not
have adequate assurance that participating importers comply with
federal trade requirements" and therefore cannot reasonably assert
that government revenues are being protected. For a copy of the
report please follow this link: OIG Report on
Importer Self Assessment Program
Remarks
from BIS Update Conference: President Obama's
remarks on efforts to reform export controls delivered on August
31st at the BIS Update Conference can be heard by following this
link: BIS Update Conference
Remarks
CBSA Issues
National Priorities: The
Canada Border Services Agency (CBSA) issued its list of national
priorities for trade compliance verifications. For a copy of the
list please follow this link: CBSA National Trade Verification
Priorities
GAO Issues
Supply Chain Security Report: The GAO issued a
report on Supply Chain Security and Container Security Technologies
in September. The report concluded that the Department of Homeland
Security has conducted research and development for four container
security technology projects, but has not yet developed performance
standards for them. For a copy of this
54 page report please follow this link: GAO Report on Supply Chain
Security & Container Technology
 Happy New Year: The
government's new fiscal year began on October 1st.
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A New Term
is Born
By Michael Laden
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 Like most industries, global trade has its own
unique vernacular that one must navigate and master when first
beginning their career. Seasoned practioners in this industry can
practically construct entire sentences using only acronyms and
obscure terms. Add one more to the list, the term AMS Bill of Lading is a direct
outgrowth of the Importer Security Filing (ISF) program mandated by
U.S. Customs & Border Protection (CBP) in January of 2008. The
AMS Bill of Lading denotes
and is a way to differentiate the bill of lading number that was
actually entered by the carrier into the CBP Automated Manifest
System (AMS). It can be a house or master bill of lading and it
has quickly become the most important bill of lading number in the
transaction. In order to timely file the ISF an importer or their
agent must have the AMS Bill of
Lading no later than 24 hours before the vessel sails at
origin. Without that critical information and lynchpin the ISF
cannot be
filed.
(more follows, to read the entire article please click the link
below).
To read the entire article
click here: A New Term is
Born
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Wisps of
Wisdom
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ELC-ALC Reconciliation
In last month's column we
reminded readers how vital it is that your company have a good
command of the Incoterms used in its global transactions. Once the
terms of a sale or purchase have been established the next most
important thing is that your company has a process whereby it
estimates the anticipated landed cost of an item (ELC), and then
then compares that to the actual costs (ALC) when received.
Without this ability you are essentially operating blind and have
no basis by which to accurately measure your margins (or lack
thereof).
The ELC-ALC reconciliation is one of the most important and
frequently overlooked processes that every importer should be
performing on their goods. Without the comparative data at your
fingertips it is difficult to "cost" the imported goods and know
with reasonable certainty that you are enjoying the profits
originally envisioned. Significant ELC-ALC variances should be
investigated and can be indicative of overcharges, unanticipated
costs, the freight not moving as instructed or other
problems.
Simply put, if
your company is not taking the time to perform this exercise on a
statistically sound sample of consignment (at a minimum) your
company may be on the short end of the profit equation or
uncompetitive in pricing as a result.
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Importer Security Filing (ISF) Made
Easy |
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Often called "Turbo-Tax" for importers,
TRG Direct's best-in-class ISF and direct-filing application is
extremely intuitive and
very easy to use.
Leveraging all of the system
functionality you can literally file your ISF's in a matter of
seconds. TRG Direct's web based system is very versatile and
allows multiple users.
No permits or licenses
are required and any importer can file
their ISF's directly with CBP; and your ISF data can now flow
directly to a customs entry.
TRG Direct's pricing ($5 per ISF, or $3 per ISF if you also file
your customs entry with TRG Direct) can save your company up to 90%
off current market rates. TRG Direct accepts both XML feeds and
Excel uploads to expedite the filing process even
more.
Contact TRG Direct
today for a free demonstration of the
system.
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Global Reach
Global trade has become the
lifeblood of many businesses; it is an engine of economic growth
and the means by which millions of individuals make their living.
The volume of goods transported internationally continues to expand
exponentially. Yet national borders still exist, and with them the
need to comply with myriad reporting, documentation, and tax and
duty payment obligations. In recent years, ensuring secure trade
lanes and product safety in the global supply chain has been placed
at the top of the list of priorities for governments, resulting in
a new layer of complex requirements to be met to ensure that goods
can be moved quickly across borders. Across the globe, the Trusted
Trade Alliance is dedicated to helping your company achieve
compliant, efficient solutions to these challenges.
The Trusted Trade Alliance
provides a full range of consulting and training services focused
on assisting business in addressing the challenges of global
trade. We provide a comprehensive network of member offices
located around the globe, staffed to provide a consistent level of
expertise on 5 continents. Our members include noted experts,
well-versed in the local requirements of the countries you do
business in, as well as recognized leaders in multilateral efforts
to make global trade challenges as business-friendly and
practicable as possible. Our mission is to provide our customers
with high-quality, personalized consulting, training, advice and
assistance in the implementation of compliant trade processes at a
country, multi-country or global level.
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Click here
to visit the Trusted Trade Alliance LLC (TTA)
site
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